GP Goenka-run Duncan Group said even though the recent rise in labour wages will increase production cost of tea the company will not pass the burden on to the buyers.
Duncan chairman GP Goenka said the recent hike in labour wages for the Terai and Dooars region will increase the cost of production of tea and it will go up by INR12-15 ($0.23-0.28) per kg.
The production cost at present was around INR120 ($2.27) per kg, reported The Economic Times. Tea wages for workers of the Terai and Dooars gardens were revised at a tripartite meeting in the state of West Bengal in the first week of November 2011.
The increase of wages by INR18 ($0.34) made it almost equal to the amount that the workers in the Darjeeling gardens have been getting since April this year.
The Duncan Group currently produces around 15 million kg of tea per year. The company plans to increase replantation work from 3.5% of the total garden area to 5% this year.
"We plan to grow our tea portfolio very substantially. We are open to acquiring (gardens) anywhere if found viable," he added.
Source: http://hotdrinks.drinks-business-review.com/news/no-hike-in-duncan-tea-price-gp-goenka-211211
Duncan chairman GP Goenka said the recent hike in labour wages for the Terai and Dooars region will increase the cost of production of tea and it will go up by INR12-15 ($0.23-0.28) per kg.
The production cost at present was around INR120 ($2.27) per kg, reported The Economic Times. Tea wages for workers of the Terai and Dooars gardens were revised at a tripartite meeting in the state of West Bengal in the first week of November 2011.
The increase of wages by INR18 ($0.34) made it almost equal to the amount that the workers in the Darjeeling gardens have been getting since April this year.
The Duncan Group currently produces around 15 million kg of tea per year. The company plans to increase replantation work from 3.5% of the total garden area to 5% this year.
"We plan to grow our tea portfolio very substantially. We are open to acquiring (gardens) anywhere if found viable," he added.
Source: http://hotdrinks.drinks-business-review.com/news/no-hike-in-duncan-tea-price-gp-goenka-211211